Diversification calls for spreading the portfolio among different types of assets, including not
only stocks but also bonds, real estate, international investments, and cash equivalents. Through diversification, investors can offset losses on some investments with gains on others.Diversification is the act of investing in a variety of different industries, areas, countries, and
types of financial instruments, in order to reduce the chance that all of the investments
will drop in price at the same time.

diversification in Finance

(dɪvɜrsɪfɪkeɪʃən)

noun

(Finance: Investment)

Diversification is the act of investing in different industries, areas, countries, and types of financial
instruments, to reduce the chance that all of the investments will drop in price at the same time.

Diversification involves dividing investment funds among a variety of securities with different risk,
reward, and correlation statistics so as to minimize unsystematic risk. Through diversification, investors can offset losses on some investments with gains on others.Diversification is the act of investing in different industries, areas, countries, and financial
instruments, to reduce the chance that all of the investments will drop in price at
the same time.

Example sentences containing 'diversification'

These examples have been automatically selected and may contain sensitive content.
Read more…

What other advice can you provide for managing diversification without damaging our corebusiness? Times, Sunday Times (2016)International diversification offers great opportunities but also much risk. Times, Sunday Times (2015)No wonderexperts are urging investors to consider international diversification to diminish risk. Times, Sunday Times (2016)It is obvious that diversification reduces risk.Charles A. D&apos;Ambrosio & Stewart D. Hodges & Richard Brealey & Stewart Myers Principles of Corporate Finance (1991)The managers will not invest for international diversification. Times, Sunday Times (2006)The chapter also paysconsiderableattention to the benefits of international portfolio diversification.Maurice D. Levi International Finance: The markets and financial management of multinational business. (1983)But it is only fair to add that international diversification is no panacea. Times, Sunday Times (2016)The remainder of the fund is invested in index-linked bonds to provide diversification and inflationprotection. Times, Sunday Times (2015)Certainly, actively managed or tracker funds are sensible and provide portfolio diversification. Times, Sunday Times (2016)So it is worth considering European opportunities for international diversification. Times, Sunday Times (2015)A The simplest way to diminish your exposure to investment risks is diversification. Times, Sunday Times (2015)Shareholders should remember that opportunities do not end at Dover and consider international diversification into some of the most rapidly growing
economies in the world. Times, Sunday Times (2015)Within an economy there is some degree of independence of assetreturns, and this provides some diversification opportunities for investors who do not ventureabroad.Maurice D. Levi International Finance: The markets and financial management of multinational business. (1983)Also, globalfirms provide geographic diversification, which reduces risk in a portfolio. Times, Sunday Times (2014)This raised the risk of insufficient diversification and too much volatility, M&Gsaid. Times, Sunday Times (2011)By the beginning of the 1980s the character of the business was becoming more international, with diversification and collaboration with other firms in parts of its operations. Times, Sunday Times (2008)